Knitted news18.10.22 13:47 23 in Tishrei Tishpag
(Photo: Moshe Shai/Flash 90)
The layoffs in the high-tech market continue: After Intel announced last week about layoffs of thousands of workers, Microsoft also confirms that it has begun a process of layoffs.
Last July, the company announced that it plans to cut less than 1% of all its employees. But in the announcement she issued now, she did not say what the number of layoffs would be, and whether they were part of the plan she announced in the summer.
Microsoft currently has more than 200 thousand employees according to reports on various websites. The company now intends to lay off nearly 1,000 employees in several divisions, including Xbox and Edge. It should be noted that at this stage no layoffs of workers in Israel are expected.
Loss of hundreds of millions of dollars in revenue
The move follows difficulties experienced by the company in the recent period. The company reported revenues of $51.9 billion in the second quarter of 2022, when the forecast was for $52.5 billion. Net income amounted to $2.23 per share, compared to higher profit forecasts of $2.29.
The company stated that the changes in the dollar exchange rate and the production stoppages in China, which led to the loss of hundreds of millions of dollars in revenue, are among the reasons why it did not meet the forecasts.
In addition, the company’s operating expenses increased by $126 million following the reduction in Microsoft’s operations in Russia. Another figure shows an expenditure of 113 million dollars for the payment of compensation to the fired employees, this shows the trend of cuts in the company, even before the recent layoffs.
At the same time, the cloud division recorded revenues of $20.9 billion, somewhat lower than forecasts ($21.1 billion), and revenues from XBOX decreased by 6%.
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